Factoring business collapses after suspected client fraud

[edit 04/01/2017; the name Challenge Finance Limited has been bought by a new company which bears no relation to the following article.]

Factoring business Challenge Finance Limited has been placed in
administration after an alleged fraud by one of its clients.

Neil Bennett, Michael Healy and Paul Reeves of Leonard Curtis were appointed
as administrators at the end of May to the Sevenoaks-based company, which
provided invoice finance services to small and medium sized businesses in the
south east.

‘This is a business which had been founded on the ideal of providing an
independent and sound service to its clients,’ said Bennett. ‘Unfortunately its
independence has been threatened by fraud on the part of one its clients, the
extent of which has still to be determined. The directors made a number of
attempts to resolve the situation but were unable to do so satisfactorily –
hence our appointment.’

After its inception in 2000, the business grew steadily on the back of the
growth of alternative finance, but the alleged client fraud forced the company
to call in the administrators.

‘We are running the business as usual, looking to ensure that all the
existing clients continue to be funded,’ added Bennett. ‘This is a business
which has a strong client base. The investigation into the fraud is ongoing,
meanwhile we are talking to a number of potential acquirers who are interested
in taking on the rest of the business.’